Investments

12 Months Ended

Dec. 31, 2020

Investments

The following table presents gains (losses) due to changes in fair value of investments that are measured at fair value pursuant to application of the fair value option:


	Year Ended December 31,
	2020		2019		2018
	(Amounts in thousands)
Fixed maturity securities	$	41,394	$	104,379	$	(53,927)
Equity securities	32,232		90,920		(77,494)
Short-term investments	(1,014)		1,295		(1,237)
Total gains (losses)	$	72,612	$	196,594	$	(132,658)

The following table presents gross gains (losses) realized on the sales of investments:


	Year Ended December 31,
	2020						2019						2018
	(Amounts in thousands)
	Gross Realized Gains		Gross Realized Losses		Net		Gross Realized Gains		Gross Realized Losses		Net		Gross Realized Gains		Gross Realized Losses		Net
Fixed maturity securities	$	1,884	$	(4,296)	$	(2,412)	$	2,413	$	(1,066)	$	1,347	$	549	$	(3,563)	$	(3,014)
Equity securities	75,591		(80,134)		(4,543)		47,411		(28,089)		19,322		43,420		(45,607)		(2,187)
Short-term investments	146		(2,438)		(2,292)		177		(2,133)		(1,956)		61		(2,429)		(2,368)

Contractual Maturity

At December 31, 2020, fixed maturity holdings rated below investment grade and non-rated comprised 1.3% of total investments at fair value. Additionally, the Company owns securities that are credit enhanced by financial guarantors that are subject to uncertainty related to market perception of the guarantors’ ability to perform. Determining the estimated fair value of municipal bonds could become more difficult should markets for these securities become illiquid.

The following table presents the estimated fair values of the Company's fixed maturity securities at December 31, 2020 by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Estimated Fair Value
	(Amounts in thousands)
Fixed maturity securities:
Due in one year or less	$	246,708
Due after one year through five years	693,068
Due after five years through ten years	540,052
Due after ten years	2,069,982
Total	$	3,549,810

Investment Income

The following table presents a summary of net investment income:


	Year Ended December 31,
	2020		2019		2018
	(Amounts in thousands)
Fixed maturity securities	$	100,166	$	102,254	$	102,198
Equity securities	37,598		32,233		30,496
Short-term investments	2,822		12,381		8,789
Total investment income	$	140,586	$	146,868	$	141,483
Less: investment expense	(5,728)		(5,605)		(5,645)
Net investment income	$	134,858	$	141,263	$	135,838